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WINNING BUSINESS ONLINE




         Rachel Fletcher
        FCS Associates Ltd
          15th June 2012
FCS ASSOCIATES LTD
•Specialist Bid Writing, Funding
 and Strategic Business Planning
 Consultancy
Key Services:
    •   Bid Writing: For public sector
        tenders, grants and charity funding
    •   Enterprise Coaching: Business
        planning, funding reviews
        procurement support.
    •   FCS Tracker: Personalised weekly
        funding e-bulletin
    •   Bid Writing Workshops:
        Interactive, tailored workshops to
        support tender development.
FCS TRACKER
Personalised contract and
grant e-bulletin
Weekly service
Unique and robust
Telephone support to
navigate websites and portals
Reviews over 250 sources
Constantly expanding
database of opportunities
Can be instantly updated to
look at new contract areas
KEY THEMES OF TODAY’S
    PRESENTATION
Introduction to

E-Procurement
CHALLENGES AND
            OPPORTUNITIES
 Weak national economy

 Increasing global competition

 Difficulty of managing late payments/non-payments

However:
 New Business Opportunity: £236b is spent each year by the
 public sector, increasingly using e-procurement

 Local government ~£40 billion every year on goods and
 services 50% supplied by SMEs/micro businesses
WHAT IS E-PROCUREMENT
 Use of electronic methods in every stage of the
purchasing process
  Advertising contracts
  Managing contracts
  Evaluating tenders
  Paying suppliers
  Dynamic purchasing systems
Benefits
  Reduce paperwork
  Improve efficiency
  Help you process orders more quickly
  Speed up payment
IS IT REALLY COMPLICATED?
Yes and No
Protecting taxpayers money
Processes have to be:
  Transparent
  Fair for All
  Value for Money
Longer decision making, policies/accreditations needed
But public sector are:
  Good payers
  Stable organisations
  Buy a vast range of products and services
    Rock salt to business support – everything in between
POTENTIAL PUBLIC SECTOR
          CUSTOMERS
Central government departments and agencies
Devolved administrations in Scotland, Wales and
Northern Ireland
Local Authorities
National Health Service
Police service
Armed forces
Universities
Colleges
Prisons
Could also be a sub-contractor for high -value
contracts won by other, larger businesses.
TYPES OF PROCUREMENT
            PROCEDURES
Open
   ITT sent to all.
Restricted
   Two-stage process, PQQ followed by an ITT to short
   listed suppliers
Competitive Dialogue
   Used for complex procurements whereby authority
   negotiates with companies to develop suitable
   solution.
Negotiated
   Only used in limited circumstances to allow contract
   negotiations with one or more suppliers.
Framework Agreement
   Used as a call-off basis. Mini-competition may be
   held to identify the best supplier. A contract is only
   formed when an order is placed for a specific
   requirement.
Finding Opportunities
  and Being Found
E-MARKETPLACE: FINDING
             OPPORTUNITIES
1.   Free websites
       Contracts Finder (replaced supply to gov)
       Public Tenders.net


2.   Free On-Line Portals:
       SCSM
       The Chest
       Source Derbyshire

3.   Purchasing Consortium Portals: (Fee is Payable)
       Crescent Purchasing Consortium

4.   Opportunities Websites (Fee is Payable)
       Tenders Direct, QSL Ltd etc
Recommended FREE Websites
   Organisation Specific Sites:
   – Emergency Services: https://www.bluelight.gov.uk/portal/cms.nsf/vHomePage/fSection?OpenDocument
   – CompeteFor: https://www.competefor.com/business/opportunitySearchForm.html
   – MOD contract: http://www.contracts.mod.uk/introduction/index.shtml


National / Regional Portals
  National: http://www.contractsfinder.businesslink.gov.uk
  Yorkshire Councils: http://scms.alito.co.uk/
  Enterprising Barnsley: http://www.enterprisingbarnsley.co.uk/
  North Eastern Purchasing Organisation NEPO: https://www.qtegov.com/procontract
  Public Tenders.net: www.publictenders.net
  Source Derbyshire: http://www.sourcederbyshire.co.uk
  North West : https://www.thechest.nwce.gov.uk/cms/cms.nsf
  Wales E-tendering: https://etenderwales.bravosolution.co.uk/web/login.shtml


European:
  TED/OJEU – Tenders Electronic Daily: http://ted.europa.eu/TED/browse/browseByBO.do
REGISTRATION: PROCUREMENT WEB
              PORTALS
  Have to register if you visit for the first time
  Cannot respond if you are not registered
  Can receive e-bulletins of opportunities
2 Types:
  Simple: e-mail, company details and password
  Complex: (To provide Buyers with information)
    Company Information
    Service description, case studies and referees
    Financial data
    Insurance certificates
    Questionnaires required completion for specific
    services
  On-line tutorial available to help you
  Can update at anytime
RSS Feeds or 'Really Simple Syndication'
Allows you to stay updated and save time by retrieving the latest
content from the sites you are interested in.
PROACTIVE OPPORTUNITY
                             SEARCHING
 •Many public sector organisations have a list of current
 contracts on their website
 •E.g. BMBCContract Register
 •Details of current contracts, size and who delivers it
 •Contact name to find out more
              CONTRACT                                      EXTENSION                 TOTAL OR
TITLE         DESCRIPTION           START DATE     END DATE PERIOD      AMOUNT         ANNUAL SUPPLIER                CONTACT       COMMENT
Day           Day care in a                                                                                           John
opportunities residential setting     01/04/2008   30/09/2011             175634.00     Annual Age Concern            Harding       Under review



Insurance      Programme of
Programme      Insurance Covers       01/10/2008   30/09/2011 2 years    1140000.00     Annual Travelers/Zurich/AXA   Neil Darlow




 •http://www.barnsley.gov.uk/services/business/tenders-and-
 contracts/procurement-contracts-lists/
DO’S AND DON’TS: IDENTIFYING
            OPPORTUNITIES
Know whose responsibility it is to identify opportunities
  Ensure a process is in place for holidays / sickness
Do organise your approach
  Weekly/monthly website checks
  Know which bulletins you receive information from
  Have a centralised information system for
  weblinks/logins/passwords
Do thoroughly read opportunities
  Don’t dismiss opportunities based on the title
  Always read the specification if you think it might
  be relevant
Are You Tender Ready?
Are You Tender Ready?

What does being Tender Ready mean?

  Having all the information you need at short notice
  to apply for tenders and grants
TENDER READY REQUIREMENTS
Responding to an
  Opportunity
PROCUREMENT PROCESS: 9 STEPS
Assessment of Opportunities
How do you know if you should pursue a contract
opportunity? Do a SWOT Analysis

No right or wrong answer, a question of best using
resources available

Key Issues this consider:
  How much input is needed?
  Does it fit with company’s long term growth strategy
  Cash flow implications
  Timescales realistic for delivery?
  Do you know the organisation?
  Realistic deadline?
  Known competitors?
SUBMITTING EOI’S AND PQQ’S
Expression of Interest (EOI)
  E-mail to request a PQQ or ITT
  May need to be registered on relevant portal to submit an EOI

Pre-Qualification Questionnaire (PQQ)
  Vetting process
  PQQ – ongoing or specific to individual tenders
  Generic business related information e.g. organisational
  structure / financial credibility
  Can be online or paper based
  Will have deadlines for submission – must be completed or
  will not be invited to tender
  Assesses the competencies of organisation in areas of quality,
  equality and diversity, health and safety, financial health of
  provider
EXAMPLE PQQ:

PLEASE COMPLETE ONLY REQUIRED SECTIONS &
QUESTIONS
Not all sections of this questionnaire are required to be
completed, please complete those sections as indicated in the
column opposite.

G – General Background Information

F – Financial                                                              CONTRACT TITLE

H – Health & Safety
                                                                Provision of Training Consultancy
Q – Quality Assurance                                           Services for the University of
D – Diversity & Equality General                                Birmingham’s People and Organisational
DH – Diversity & Equality High Relevance                        Development Department

C – Corporate Responsibility

E – Environmental

W – WEEE Directive

R – RoSH Directive

V – Verification
PQQ - SKILLS ENHANCEMENT FUND
SUBMITTING THE PQQ
Usually submitted on-line
Don't do at last minute: Frequent overload
Check all your responses carefully
Ensure that you’ve included all the necessary
documentation
Sign and date the Declaration section of the form –
one of the most common reasons for a PQQ to be
non-compliant is that it is not signed, or not signed
by a senior manager or executive
Ensure that the awarding authority receives your
PQQ on time – late arrivals will be rejected.
INVITED TO SUBMIT AN ITT: 6 KEY
         DOCUMENTS
Bid Development Process

 Tender Ready                                       Evaluation

           Bid Formulation

                      Bid Writing                  Implementation

                             Submission

                                    Presentation




Feedback                 FAILURE                   SUCCESS
THE DO’S AND DON’TS: BID
DEVELOPMENT
Before you start writing
     READ ALL SUPPORTING DOCUMENTATION

Ascertain if you require clarification on certain points
Attend Briefing Events (where organised)
Take into account the evaluation criteria
Start as soon as possible
Determine your tender-writing strategy
 •   Identify the bid development team
 •   Include input from across the organisation to add
     value and innovation
Don’t put pen to paper until you have created an outline
plan
THE BID FORMULATION -
           SUMMARY
What: Aims and objectives. Needs to be clear and
measurable. SMART

Why: The strategic link. What is the evidence of
need for the project? PEST

Who: Staff qualifications and specialist expertise.
Organisation charts, CV’s

How: Project Methodology. How the
service/product be delivered,
BID EVALUATION
Must have a clear understanding before you put your
bid together
Bid scoring varies widely
Sometime only certain questions are scored
  Threshold questions (pass/fail): e.g. financials, insurances,
  accreditations
  Question Weighting: Areas depend upon client’s view of the
  importance specific aspect.
Lowest Price or MEAT (most frequent)
Most Economically Advantageous Tender
Assess how you propose to deliver the contract (quality)
as well as the cost of the contract (price). To win the
contract, your tender will need to demonstrate the best
balance of quality and price – not just the lowest price.
STEP 4

Do’s and Don’ts of Bid
       Writing
BID WRITING - KEY TIPS
Read the question, then read it again
Highlight key sentences: italics – bold
Use ITT as a questionnaire
Make use of the Q&A facilities
Set clear objectives and reiterate them throughout the bid
Use clients language
Proof read and ensure a consistent writing style
Use bespoke diagrams to emphasise and support your
argument
Double check finance tables
Check references
Check submission process
DON’TS: BID WRITING
Leave questions unanswered
Switch reader off:
  Small font
  Tight line spacing
  Poor spelling
  Confused numbering / bullets
Do not assume anything
Good bid on paper: but undeliverable
  Timescale
  Costs
  Deliverables and outputs
Leave until last minute
DO: BID WRITING
Develop a working document to be worked into a draft
bid
Prioritise bid writing activity
Homeworking/quiet space
Formulate bid writing action plan:
   Establish bid writing individual/team
   Agree realistic deadlines
Use colleagues– the biggest resource!
  Restrict comment
  Request specific Input
  ‘Critical Friend’
  Have sufficient time
IN THE FUTURE: E-AUCTIONS
E-Auctions: Electronic Reverse Auction
  An eAuction is a means in which pre-qualified suppliers
  can bid electronically for a contract.
  Suppliers bid progressively lower during the auctions
  period.
  May be used in conjunction with open or restricted
  procedures
Most have a pre–qualification stage, to ensure
other important evaluation criteria are taken into
account as well as cost,
Currently, relatively rare, used for commodity–type
products
SUMMARY
E-procurement is a huge business opportunity
Not as complex as it first appears
Direction of travel
Lots of on-line help:
  Tutorials
  E-bulletins
  RSS feeds
Need to invest time to understand processes and
opportunities
Being organised helps!

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Winning Business Online

  • 1. WINNING BUSINESS ONLINE Rachel Fletcher FCS Associates Ltd 15th June 2012
  • 2. FCS ASSOCIATES LTD •Specialist Bid Writing, Funding and Strategic Business Planning Consultancy Key Services: • Bid Writing: For public sector tenders, grants and charity funding • Enterprise Coaching: Business planning, funding reviews procurement support. • FCS Tracker: Personalised weekly funding e-bulletin • Bid Writing Workshops: Interactive, tailored workshops to support tender development.
  • 3. FCS TRACKER Personalised contract and grant e-bulletin Weekly service Unique and robust Telephone support to navigate websites and portals Reviews over 250 sources Constantly expanding database of opportunities Can be instantly updated to look at new contract areas
  • 4. KEY THEMES OF TODAY’S PRESENTATION
  • 6. CHALLENGES AND OPPORTUNITIES Weak national economy Increasing global competition Difficulty of managing late payments/non-payments However: New Business Opportunity: £236b is spent each year by the public sector, increasingly using e-procurement Local government ~£40 billion every year on goods and services 50% supplied by SMEs/micro businesses
  • 7. WHAT IS E-PROCUREMENT Use of electronic methods in every stage of the purchasing process Advertising contracts Managing contracts Evaluating tenders Paying suppliers Dynamic purchasing systems Benefits Reduce paperwork Improve efficiency Help you process orders more quickly Speed up payment
  • 8. IS IT REALLY COMPLICATED? Yes and No Protecting taxpayers money Processes have to be: Transparent Fair for All Value for Money Longer decision making, policies/accreditations needed But public sector are: Good payers Stable organisations Buy a vast range of products and services Rock salt to business support – everything in between
  • 9. POTENTIAL PUBLIC SECTOR CUSTOMERS Central government departments and agencies Devolved administrations in Scotland, Wales and Northern Ireland Local Authorities National Health Service Police service Armed forces Universities Colleges Prisons Could also be a sub-contractor for high -value contracts won by other, larger businesses.
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  • 11. TYPES OF PROCUREMENT PROCEDURES Open ITT sent to all. Restricted Two-stage process, PQQ followed by an ITT to short listed suppliers Competitive Dialogue Used for complex procurements whereby authority negotiates with companies to develop suitable solution. Negotiated Only used in limited circumstances to allow contract negotiations with one or more suppliers. Framework Agreement Used as a call-off basis. Mini-competition may be held to identify the best supplier. A contract is only formed when an order is placed for a specific requirement.
  • 12. Finding Opportunities and Being Found
  • 13. E-MARKETPLACE: FINDING OPPORTUNITIES 1. Free websites Contracts Finder (replaced supply to gov) Public Tenders.net 2. Free On-Line Portals: SCSM The Chest Source Derbyshire 3. Purchasing Consortium Portals: (Fee is Payable) Crescent Purchasing Consortium 4. Opportunities Websites (Fee is Payable) Tenders Direct, QSL Ltd etc
  • 14. Recommended FREE Websites Organisation Specific Sites: – Emergency Services: https://www.bluelight.gov.uk/portal/cms.nsf/vHomePage/fSection?OpenDocument – CompeteFor: https://www.competefor.com/business/opportunitySearchForm.html – MOD contract: http://www.contracts.mod.uk/introduction/index.shtml National / Regional Portals National: http://www.contractsfinder.businesslink.gov.uk Yorkshire Councils: http://scms.alito.co.uk/ Enterprising Barnsley: http://www.enterprisingbarnsley.co.uk/ North Eastern Purchasing Organisation NEPO: https://www.qtegov.com/procontract Public Tenders.net: www.publictenders.net Source Derbyshire: http://www.sourcederbyshire.co.uk North West : https://www.thechest.nwce.gov.uk/cms/cms.nsf Wales E-tendering: https://etenderwales.bravosolution.co.uk/web/login.shtml European: TED/OJEU – Tenders Electronic Daily: http://ted.europa.eu/TED/browse/browseByBO.do
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  • 18. REGISTRATION: PROCUREMENT WEB PORTALS Have to register if you visit for the first time Cannot respond if you are not registered Can receive e-bulletins of opportunities 2 Types: Simple: e-mail, company details and password Complex: (To provide Buyers with information) Company Information Service description, case studies and referees Financial data Insurance certificates Questionnaires required completion for specific services On-line tutorial available to help you Can update at anytime
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  • 21. RSS Feeds or 'Really Simple Syndication' Allows you to stay updated and save time by retrieving the latest content from the sites you are interested in.
  • 22. PROACTIVE OPPORTUNITY SEARCHING •Many public sector organisations have a list of current contracts on their website •E.g. BMBCContract Register •Details of current contracts, size and who delivers it •Contact name to find out more CONTRACT EXTENSION TOTAL OR TITLE DESCRIPTION START DATE END DATE PERIOD AMOUNT ANNUAL SUPPLIER CONTACT COMMENT Day Day care in a John opportunities residential setting 01/04/2008 30/09/2011 175634.00 Annual Age Concern Harding Under review Insurance Programme of Programme Insurance Covers 01/10/2008 30/09/2011 2 years 1140000.00 Annual Travelers/Zurich/AXA Neil Darlow •http://www.barnsley.gov.uk/services/business/tenders-and- contracts/procurement-contracts-lists/
  • 23. DO’S AND DON’TS: IDENTIFYING OPPORTUNITIES Know whose responsibility it is to identify opportunities Ensure a process is in place for holidays / sickness Do organise your approach Weekly/monthly website checks Know which bulletins you receive information from Have a centralised information system for weblinks/logins/passwords Do thoroughly read opportunities Don’t dismiss opportunities based on the title Always read the specification if you think it might be relevant
  • 24. Are You Tender Ready?
  • 25. Are You Tender Ready? What does being Tender Ready mean? Having all the information you need at short notice to apply for tenders and grants
  • 27. Responding to an Opportunity
  • 29. Assessment of Opportunities How do you know if you should pursue a contract opportunity? Do a SWOT Analysis No right or wrong answer, a question of best using resources available Key Issues this consider: How much input is needed? Does it fit with company’s long term growth strategy Cash flow implications Timescales realistic for delivery? Do you know the organisation? Realistic deadline? Known competitors?
  • 30. SUBMITTING EOI’S AND PQQ’S Expression of Interest (EOI) E-mail to request a PQQ or ITT May need to be registered on relevant portal to submit an EOI Pre-Qualification Questionnaire (PQQ) Vetting process PQQ – ongoing or specific to individual tenders Generic business related information e.g. organisational structure / financial credibility Can be online or paper based Will have deadlines for submission – must be completed or will not be invited to tender Assesses the competencies of organisation in areas of quality, equality and diversity, health and safety, financial health of provider
  • 31. EXAMPLE PQQ: PLEASE COMPLETE ONLY REQUIRED SECTIONS & QUESTIONS Not all sections of this questionnaire are required to be completed, please complete those sections as indicated in the column opposite. G – General Background Information F – Financial CONTRACT TITLE H – Health & Safety Provision of Training Consultancy Q – Quality Assurance Services for the University of D – Diversity & Equality General Birmingham’s People and Organisational DH – Diversity & Equality High Relevance Development Department C – Corporate Responsibility E – Environmental W – WEEE Directive R – RoSH Directive V – Verification
  • 32. PQQ - SKILLS ENHANCEMENT FUND
  • 33. SUBMITTING THE PQQ Usually submitted on-line Don't do at last minute: Frequent overload Check all your responses carefully Ensure that you’ve included all the necessary documentation Sign and date the Declaration section of the form – one of the most common reasons for a PQQ to be non-compliant is that it is not signed, or not signed by a senior manager or executive Ensure that the awarding authority receives your PQQ on time – late arrivals will be rejected.
  • 34. INVITED TO SUBMIT AN ITT: 6 KEY DOCUMENTS
  • 35. Bid Development Process Tender Ready Evaluation Bid Formulation Bid Writing Implementation Submission Presentation Feedback FAILURE SUCCESS
  • 36. THE DO’S AND DON’TS: BID DEVELOPMENT Before you start writing READ ALL SUPPORTING DOCUMENTATION Ascertain if you require clarification on certain points Attend Briefing Events (where organised) Take into account the evaluation criteria Start as soon as possible Determine your tender-writing strategy • Identify the bid development team • Include input from across the organisation to add value and innovation Don’t put pen to paper until you have created an outline plan
  • 37. THE BID FORMULATION - SUMMARY What: Aims and objectives. Needs to be clear and measurable. SMART Why: The strategic link. What is the evidence of need for the project? PEST Who: Staff qualifications and specialist expertise. Organisation charts, CV’s How: Project Methodology. How the service/product be delivered,
  • 38. BID EVALUATION Must have a clear understanding before you put your bid together Bid scoring varies widely Sometime only certain questions are scored Threshold questions (pass/fail): e.g. financials, insurances, accreditations Question Weighting: Areas depend upon client’s view of the importance specific aspect. Lowest Price or MEAT (most frequent) Most Economically Advantageous Tender Assess how you propose to deliver the contract (quality) as well as the cost of the contract (price). To win the contract, your tender will need to demonstrate the best balance of quality and price – not just the lowest price.
  • 39. STEP 4 Do’s and Don’ts of Bid Writing
  • 40. BID WRITING - KEY TIPS Read the question, then read it again Highlight key sentences: italics – bold Use ITT as a questionnaire Make use of the Q&A facilities Set clear objectives and reiterate them throughout the bid Use clients language Proof read and ensure a consistent writing style Use bespoke diagrams to emphasise and support your argument Double check finance tables Check references Check submission process
  • 41. DON’TS: BID WRITING Leave questions unanswered Switch reader off: Small font Tight line spacing Poor spelling Confused numbering / bullets Do not assume anything Good bid on paper: but undeliverable Timescale Costs Deliverables and outputs Leave until last minute
  • 42. DO: BID WRITING Develop a working document to be worked into a draft bid Prioritise bid writing activity Homeworking/quiet space Formulate bid writing action plan: Establish bid writing individual/team Agree realistic deadlines Use colleagues– the biggest resource! Restrict comment Request specific Input ‘Critical Friend’ Have sufficient time
  • 43. IN THE FUTURE: E-AUCTIONS E-Auctions: Electronic Reverse Auction An eAuction is a means in which pre-qualified suppliers can bid electronically for a contract. Suppliers bid progressively lower during the auctions period. May be used in conjunction with open or restricted procedures Most have a pre–qualification stage, to ensure other important evaluation criteria are taken into account as well as cost, Currently, relatively rare, used for commodity–type products
  • 44. SUMMARY E-procurement is a huge business opportunity Not as complex as it first appears Direction of travel Lots of on-line help: Tutorials E-bulletins RSS feeds Need to invest time to understand processes and opportunities Being organised helps!